Finding Text
Significant Deficiency
2024-001. Equipment and Real Property Management
United States Department of Education, Passed Through New York State, Department of Education:
Special Education Cluster
Special Education Grants to States: IDEA Part B ALN: 84.027
Special Education Grants to States: IDEA 611 ARP Allocations ALN:84.027X
Special Education Preschool Grants: IDEA Preschools ALN: 84.173
Special Education Preschool Grants: DEA 619 ARP Allocations ALN: 84.173X
Education Stabilization Fund
COVID-19: Elementary and Secondary School Emergency
Relief Fund ALN: 84.425D
COVID-19: American Rescue Plan - Elementary and
Secondary School Emergency Relief ALN: 84.425U
COVID-19: American Rescue Plan - Elementary and Secondary
School Emergency Relief - Homeless Children and Youth ALN: 84.425W
Criteria: 2 CFR §200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment, whether acquired in whole or in part under a federal award, until disposition takes place. This includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property, including the Federal Award Identification Number (FAIN), and who holds title. In addition, it requires the District to track the acquisition date and cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.
Condition: The District did not include all equipment purchased with federal grant awards during the current year within its capital assets inventory records.
Cause: The District uses specific codes to identify and track equipment purchased with federal funds during the year. Since the District did not have procedures in place to review and reconcile the District’s equipment purchases to the annual capital assets additions, some of the equipment purchased under the federal awards was inadvertently omitted from the current year capital assets inventory additions.
Effect: The inability to include and differentiate capital assets acquired with federal awards in the capital assets inventory records could lead to improper procedures for disposal of those capital assets.
Questioned Costs: None reported.
Context: The review of the District’s capital assets additions in the capital assets inventory records indicated 63 transactions; the auditor noted 7 capital assets additions that were not included.
Identification of a Repeat Finding: This is not a repeat finding.
Recommendation: The District should implement procedures where there is a formal reconciliation performed between the District’s equipment expenditure codes and the additions to the District’s capital assets inventory records. This will ensure that all equipment purchased with federal awards is identified and included in the capital assets inventory records of the District by year end. Additionally, all capital assets additions purchased with federal awards should be managed in accordance with 2 CFR §200.313.
Views of Responsible Officials of Auditee: Management is in agreement with the finding. Dr. Patrick Pizzo, Assistant Superintendent for Business and Finance, will oversee the reconciliation of capital equipment purchases to the capital assets additions in the capital assets inventory records.